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tv   Mad Money  CNBC  May 20, 2013 6:00pm-7:01pm EDT

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>> bk? >> apache even though it was up 3.5%, more room to go. >> karen? >> if you own warner chilcott, time to sell. >> conocophillips seems to have the mojo back. >> that wraps st. >> my mission is simple. making money. we want to level the playing field for all investors. i promise to help you find it. "mad money" starts now! . hey, i'm claimramer. welcome to "mad money." my job is not just to entertain you, but to educate you. call me, 1-800-743-cnbc. lightning struck once, not twice two, two people this week. the good kind of lightning, the kind that puts hundreds of
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millions of dollars in people's pockets. the dow dropped 19 points, s & b drifting .07% t. nasdaq declining .07%, it's worth discussing what the heck the mysterious winner of the $590 million winner of the powerball competition. hallelujah! and david clark, got billion for selling tumbler to yahoo. they've come to the right place. this is exactly what i used to do for people when i worked at goldman sachs and my hedge fund and before i went into television and my charitable trust. for those who don't have millions, or hundreds of that just yet, can you learn some very important lessons from this, too. my first stint is that you only need to get rich once. mean tag really wealthy people who are already loaded don't need to risk their money and end up needing to get rich a second
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time because they lost too much in their investments. second, all we preach diversification within your stock portfolio here at "mad money." there is a larger one. there is diversification. of course the whole span, the panaplea, someone as richard as the powerball winner and david carp has to be thinking what has gone wrong in the world, preferably gold bars, stored in countries that are the safest, yes, i care about that. these days, it would probably be banks in canada. they are more solvent than the banks in switzerland. the current freefall in gold should be of no interest to these two gentleman or well powerball, too, lady. because, really, anyone who takes a long-term perspective on gold because it can preserve its own value in times of real turbulence and social upheaval. we don't have either right now. this is a long term thing we are talking about. by the way, we have mon tore printing presses going 24/7 in a
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tonne of countries. i don't think gold is a great deal. that's not the point of long-term investing, it is investing to own god. i love warren buffet. don't let him tell you it's not investing. what else? both of these winners need to have high end real estate, meaning mansion, as well as masterworks painting, why those two? again, if you want to get rich once, you don't need inflation to eat into that wealth. it so happens the two assets that held up in periods of hyperinflation like buy mart germany before world war ii and modern day zimbabwe are paintings, the kinds you buy at soth by kristi's, the 5, 10, 15, $million price tag. i would do i verse, raw end, farm land as well as farm real estate, particularly in europe.
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that's the stuff that's really for the hundreds of millionaires. i wanted to get that in. people are sparing the lives of the rich and famous. that's the money of the rich and famous. and that leaves us with the financial information of the portfolio that, well, let's say you and i have to worry about. here's writ gets difficult. fiwere working with someone with this kind of wealth in the old day, someone with powerball or tumbler money, i wouldn't even bother with stocks. you know what, it would be a huge waste of time for these people, a waste of energy an possibly money. because stocks are all about getting rich by taking risks, historically, that is. as i said before, you only need to get rich once. so for someone with hundreds of millions of dollars, i would normally, usually divide their money among three types of assets, u.s. treasurys, municipal bonds and corporate bonds. that's right. i would make it a 100% fixed income. at least for the powerball
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player who i presume is older than item pler's car, maybe a little more risk for carp. i might be willing, if someone, if corporate were interested add a component layered on. then it would be interesting to see long-term debts pay off. in the old day, 20% in long-term treasury, 30% in a smattering f bonds, 10 years. aaas, 10% to high quality mortgage bonds, offer a little more interest or generate more income. the rest, put it all in municipal bonds, only general obligation bonds, so-called gos, it must be raised by paying taxes or tolls. i don't want revenue bonds, too risky. i would not think of that bond in any state where there is deat all time rick. so no illinois, no california in the old days. i would buy munis, i think tax for the rich has increased.
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i would not bet obama jacking up rates, because frankly these republicans don't seem to have their act together even with the irs handling them on a silver platter. so you probably ask me, why not do all muns pals? because if the democrats sweep the house, i think that may be curtailed, too. all of that is what i would normally do for someone who is super rich. that's what i would have done in the ''80s and '90s and even as recently as 2009. oh, these are not normal times, now. oh, no, not for bonds. at the moment, if i were given this money, do you know, i wouldn't tell them to do any of these fixed income alternatives i just outlined at the treasury the corporates, the munis. no. i would probably but 50% in overnight cash and that would be waiting for the fed to blink because all people ever talk about is the fed will blink.
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one day the fed will raise rates. the ideal option, in particular, i am not an idealist. until they mend these rates for long-term fixed incomes for every part of the spectrum are so low that they are, indeed, dangerous. and i don't want anybody to be buying them. everyone of my usual investments that i detailed that i put rich people into would be a huge mistake here a. huge mistake. so right now, if i were managing powerball winners or david carp's new found wealth, i would do what 'are doing, i would buy higher yielding master limited partnerships or mlps, higher yielding investment trusts. some of the companies that are serial dividend raisers. why these? because the wealthy are backed into a corner. they're backed into a corner of these offerings, be i the fed. i have been thinking about it. you know what the fed has done here? they've created an us a territory moment.
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just for the rich. that's right. the feds essentially mandated rich people will not be able to make money by stuffing their bonds into wealth yeerm. in this environment, they have to risk something to stay ahead of inflation. that's bernanke's plan, they got to risk something. they got to go buy equity, because they are taking a far more risk by taking these bonds, long-term bonds and equities are considered to hold the value over the long haul. interest rates are where they are right now for bovendz, i don't how they could hold their value. bernanke made them a sucker bet. us a territory for you, high yielding stocks, they are perfect. they're exactly what works right now. how about these oil mass limited partnerships. i used to like buying bonds backed by tolls. like the widening of the new jersey turnpike. now there is nothing like tonnepikes that yield 5% tax rates for if wealthy. those were the best piece of
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paper i ever sold, nothing like that at the moment. so let's just forget about them, stop being wishful for the days before the fed mandated us a territory for the wealthy and look around for better opportunities. so mr. carp and mr. powerball winner, it will be kinder morgan energy partners for you and energized partners, too. 4.95% respectively. a 5% and change. these mlps will give you the income you need with toll-like tendencys. that's what they are. why don't we throw in williams partner, wpz, which owns natural gas assets. that is a truly growth business. get a little 6.5% yield. then we'll kind of come up with the whole yield together, yield 5 and change. feel good about it. we want real estate trusts. healthcare trusts of america, which yields 4.4%. you could get a break in it as there is a secondary coming up.
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yes, classic dividend growers, stocks like johnson & johnson and general mills. two dividend raisers. they have terrific tax advantages as a huge percentage of the income is taxed at what half the ordinary bond companies says they will be taxed at. i know, these certainly have the risks. equities have the risk. right now the risk from owning these stocks is less than the risk you get from my traditional bond heavy methods of investment for the wealthy that i detailed early in this show. here's the bottom line. you only need to get rich once. because a fed mandated bond us a territory, we have no choice. the powerball winner and mr. corporate tumbler, at the moment you need dividends from stocks, not coupons from bonds. you need safety. right now the safety is yeelgd hire yielding stocks than it is in much lower yeelgd bonds. a memo to everyone else watching, bonds is dew just as dangerous for you, too. stephen in colorado. stephen! >> caller: hello, jim, boo-yah.
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>> boo-yah. >> caller: gold is up, mineing is coming off three-year lows. what's the plan, what should i be doing? >> when i looked over the charts this weekend. newmont mining and barrick were the worst ever. i said, don't sell these yes. less them bask. he's are hideous prices you'd be selling at. let that go higher, 3% yield and sell, sem, sem, ikatrina in texas. >> caller: boo-yah, jim. i have a question for you guys. i was wondering what you were thinking about cognizant techs. >> no, s.a.p. is where you want to be. bill mcdermott does a great job. dividend and conquer. it's all about high yielding store, stocks of high working
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american companies. you feel like a million bucks? who needs the lotto. "mad money" will be right back. coming up, discount spirit airlines has risen over 60% this year. is it time to book yourself a ticket or could unforeseen dush lens put a ceiling on this stock? find out in cramer's exclusive. and later, armed and ready? the biggest names in biotech are about to unveil their latest weapons in the war on cancer. so which players are best prepared for battle? don't miss cramer's preview. plus, dr. dollars. this fresh-faced play on healthcare has run up over 30% this year alone him could it make your next visit to the doctor's office a little more profitable. don't miss cramer's explosive with the ceo of trust care america all coming up on "mad money."
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well, two month ago i did something unprecedented here on "mad money." i recommended the airlines, not just some airlines the entire group. since then, the airline names have been flying. for those of you too skeptical to own airline stock. if you think they're too bloated with ambulance sheets, history in and out of balance sheets. why don't you pick up spirit airways. the company is nothing like a traditional airline. spirit is run like an actual business. it's a small operator, 45 planes. they go more than 200 flights a day. spirit is a low, low-cost
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ultralow cast player. they cram more people in a plane than the competition. they charge you for carry on, they keep the planes in the air more hours per day. for that, they can charge much less than the competition so you can save. spirit can break even at a price of $58 a ticket. jet blue used to charge $133 per ticket to break even. best of all, spirit has no debt. they profitably expand their fleet. spirit reported they had a 3% earnings off a 42 basis. revenues came in higher than expected rising year over year. stock has given you a 22% gain since we spoke with the ceo in march. i think he has more room to run. let check in with the president and ceo of spirit airway, hear more about what the company is dog and where it is headed. how are you? >> good to see you, jim. >> an airline that beats the numbers and in untraditional way. it seems like it can continue to do so. >> we think we can.
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we keep our costs really low. we work him we think about the investor first. >> you know, you read all these things. is spirit airlines all u.s. carriers the list of the world's worst airlines. we can joke about it. in the end, there is two customers. the customer that wants to be pampered and the customer that wants to be saved. they may not be the same people. >> sometimes they may be the same people whether they are traveling for business, they are certainly different than when they buy tear ticket and what spirit caters to, jim, is the customer that pays for the ticket themselves. they think about that and they think i may want to spend more on my husband or my wife. >> someone says, listen, they got rid of their 800-number. they got $3,500 for a carry-on bag, $10 charge for printing your boarding pass. now, do you just not want anybody to do these things?
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sa that the deal, we're supposed to bring our water, roll on? >> we like to incent customers to behave in ways that sivbsel money. you do that, we save you the money. we cardinal you $10 to print it. can you do it free at the website or at aky of course. we changed the toll number. toll-free number to a toll number almost six months allo. the l.a. times picked up a story and says we did it and forget disney hasn't had a toll number for 20 years. >> okay. how about this. i saw an article my friends business insider at the sky tracks thing that you finished in the ozturk in ozturkmenistan. let me ask you, does customer service in your industry, because it's been such a bizarre industry. does it just not matter? what matters is you get from point a for the point b as cheap as possible? >> it does matter. there is a couple things. if you got all the best chefs in
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the world, right, to measure, to do a ranking of the best restaurants, where would they put mcdonald's? >> it wouldn't be. it's fuel. >> that's it. that survey was business travelers. they're looking for frequency, nice lounges, live, flat, business seats him. all that stuff we don't do. we get you there for the lowest total price. >> you also do make money off the ancillarys. >> sure. >> that is valuable. >> we make main off the ancillarys. the great think for the customer, it lets them customize their price. i'm not paying for your choices. i check backsism stress the system. i pay for it. you don't bring the back, you don't pay. >> what's interesting for me. i fly. apparently, i flew first class. other than an extra foot, they gave me a package of ray sins. -- raisins. >> wasn't that worth it? >> they doubled the darn price because there is no competition.
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>> i know, they probably weren't even covered in chocolate. >> right. it's true. >> it's crazy. what we do. we look to try to make the total price for the ticket plus the extras less than the next best option. we get you there safely with a good smile and -- >> they care about the review, the airline only averages a stwar i square of 2 out of 10 on 1,100 posted reviews. do you care? >> i don't care about a tur u survey about a different examiner base. i care about what our customers say. they tell us price is above everything. >> right. >> they want the low price the lowest total price. they want to pay for what they care about. they don't want to pay for what they don't care about. >> your best friend is this justice department. they created a price that you fly well under. >> that's it. the reality, though, over the last couple years the consolidation in the industry has been good for the industry sector. it's stabilized capacity. it has stabilized the pricing environment.
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but that's meant a fewer service options and higher fares that allows a carrier like us to create that low-cost option and give commerce an alternative. >> why have the airlines not cared about the customers, if they say so. are you in the business. what are the other guys doing? >> i don't really know. i can tell you, i spent a part of my career in the industry. i spent time thinking how i charge you guys more money and give you reasons. and, but, the reality is, is, you know, people get caught up in what's important to the them go and fly into the right number of cities. they're having a route network that looks nice. they think it's strategy they can we serve from here to there. the flight has to leave at 7:00 a.m. that's exactly when customers have to go. we flew that out of the window. let run high utilization. let fly where people want to go at the lowest price possible. we bill the airline to do that. it works well. the reality is 1% of the customers out there will pay really high fares for a great
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physical product. everybody else wants to save money. >> when it's for me personally. i go with my kids, it's like, no, how can this happen? let's get from a to b safely. >> that's exactly what spirit does. so we take the different approach that most of the industry which says there is a big, high dollar corporate traveler out there that the rest of the industry is chasing. we'll let them chase it. >> right. that's what they do. you make money for your shareholders. you get people from a to b safely. >> safely. >> you see why i like this airline, they're making money, they're saving the ceo of spirit. what a winner this has been. "mad money" is back after the break. coming up, don't miss cramer's preview. .
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. right now we got a high quality problem. this relentless bull market has run up so far so fast. and it's really not hard to feel like a chump if you are paying off most of the stocks at theses levels. i go through the charts, this weekend, wow. other than gold stocks, if you missed this move, programs you gave too much credence to the sell system. those off want to put more capital in the smashlt, i know
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you got your dilemma. on the one hand, you may be worrying you may be coming to late to the party. maybe it doesn't make sense to show up at all. on the other hand, there is a fact that it has been a major mistake every single step in this market. a lot of people are convinced by the ideal logs when they feel they shouldn't get to this mark. the question is, how do you thread this needle? how do you vaccinate yourself against the chump factor? let me give you one word that will do it. that word is catalyst. yeah, you got to find stocks in the powerful catalyst. stocks where you know there will be important needle moving. that news is likely to be good. that could propel a stock higher than it is so far. so i want you to consider the pharma and biotech names that have been roaring all year. roughly two weeks from now, we will see a host of positive catalyst for some of these companies at the big annual society of clinical oncology,
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the asco meeting in chicago. that runs may 31st through june 4th. we always talked about this conference for years on "mad money." this conference is where the drug companies involved in the fight against cancer can strut their stuff and present new data on the cancer killing drugs they're working on. look, we talk about the meeting every year on "mad money" because it can give the drug stocks with the most impressive data a real boost. all right. so i can't see the future. i'm not for the older demographic. so we don't know what is going to happen. however the abstract of the research presented were released last week. we poured over them. they gave us a decent cents of what's coming. we went over all the major ones. tonight i want to tell you what to look out for two weeks from now. which stocks had the best chance of rallying on the news, which ones have the catalysts. before i start, though, let me make it clear, i'm not trying to give you the list of the best
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trades, that is a sublg sucker's game now. i want to work investments. many stocks with a shelf life a lot longer than two weeks between today and the oncology kaumpls i know that's what the majority of you home gamers are looking for. it's been a long time since we decided, hey, here's the stock, boom, boom, boom. we don't do that anymore. people ought to recognize that. the first way to play the asco meeting, going back to the wealth. gilead. i recommended this in september based on gilead's franchise with that hepatitis c drug they have in the pipeline. since then, 87% gig. i still like that story very much. but the company has also been making a less publicized push into the cancer drug space, with i is what we hear about at the conference, the stock didn't run today. i was surprised given what we are now hearing. gilead has a stock, if you forgive me, a lot you have to buy a vowel for. they're unbelievable. they have a drug adelucib.
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it's for advanced lymphocytic leukemia, hodgkin's lymphoma. it belongs to therapies called pi3k inhibitors. they work by block a specific protein, which is essentially the growth of the bad cells. a bunch of other companies target the protein. last week, gilead had incredibly possive early data. now they're pushing for accelerated approval. overall market for these drug, let's calm it $10 billion. we don't know how large gilead's piece will be. i think we'll get a lot more collarty once they present the asco conference. i think this can be a potential needle-more. overall, it will have seven different presentations. they are bound to score with one of them. next up, there will be a lot of focus on cancer immunotherapy. these are treatments that turbo charge your immune systems going to fight cancer. this category could be worth
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more than $10 billion in melanoma, lung cancer and kidney cancer alone. the way to play it, it's kind of a shocker. it's bristol-myers. this stock went up 34% since the beginning of the year. it pulled back last week in the oncology meeting abstractsment it found some 46 cents today. bristol miers is a big turbo company. they are starting to feel like a young biotech. their cancer franchise has the potential to be large enough to move the needle. the company has several multi-billion dollar prospects, including a melanoma drug on the mark selling well t. leading cancer immunotherapy drug play is nevonmob. that's in phase 3 trials, for nonsmall cell cancer and renal cell cancer t. consensus on wall street is this could be a $1.8 billion drug t. data we saw last week was extremely positive. if it gets approved for multiple
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indications, this could be worth 5-$6 billion in peak sales. we should get data on the drug at the asco conference with more catalysts coming in the second half of the year. bristol-myers gets 3.2%. i like they sold it for my charitable trust, waiting for a pullback. haven't gotten it. 11 days from now, you will hear the news. if you want something that hasn't run as much. you know i'm a fan of merck. it went into merck, which has been a sad sack lately. now, thanks to its massive late stage pipeline, it may not be that sad sack. it acted hideously today. they are presenting their own cancer treatment. their drug is still in early stage trials. last but not least, you are going to hear about a whole another class of anti-drugs known as parp inhibitors. how these guys work? let me get a quick biology lesson. whenever your body creates new
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cells the old cells get koirngs you get errors and breaks in the n the da prp enzymes. the prp fixes the breaks. the new cells will be much less likely to die. cancer cells reproduce must faster than healthy cells. if you take away the enzyme that repairs the dna, those cancer cells ends up dying rapidly. there are two drug companies lieic, really speculative, it's tesaro. it's a biofar ma play i recommended $15 in november. it's now at $35 bucks. you know what, we get some wrong, we get some right. they help cancer patients deal with chemotherapy, induce nausea. the company is working on a parp inhibit tore neo parric for ovarian and breast cancer. this drug is currently going into phase 3 development. this company is worth $1.5
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become. tesaro came out last week. wheel i think it is a trick play, i advise on a pullback, it's gone up $4 bucks in the past week. we like it for the orphan. we want to hear more about it at the conference. asco the american society of clinical oncology starts on may 31stt. we will follow it closely. i like gilead, bristol-myers. merck and biomarin going into the conference. i would buy tesaro. only on a pullback. remember, it's up huge when we first recommended. it is incredibly speculative. ron in south carolina. >> boo-yah from south carolina. boo-yah. a long-term investment on my land. all right. >> i don't like mild. why? because it's a commodity play.
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i know they were involved, apparently with act 50 that's another one of these stocks. that's watson. i don't like these none proprietary. i think their margins are low. they have been winners, though. they have been winners. i have been wrong. i think it's run too. let's go to joe in ohio. joe. >> jim, how are you doing? >> real good, how about you? a nice weekend. what's going on? >> hey, i want to first thank you for all your hard work. jim, my stock is exact science. they did not do as well as was hoped for in the dna test. so jim, how do you see the working out? >> you know, i talked about the tesaro. the other side was esax. they came down a lot. it came right back as we said. i think the articles were not as bad. the shorts pressed their case. you know what, we're back in 10. let's take it off the table or start all over again. it's all about the catalyst, baby. you can find key conferences. asco is a powerful, powerful
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kaumpbls. it starts may 31st. it's gleerksd it's bristol-myers. it's merck, it's bud, which is down. it's bomerin and a pullback, exact skierngs let's say with the catalyst. stay with cramer. .
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it is time! it is time for the lightning round. it's where we tell you whether to buy, buy, buy, or sell, sell, sell, when you hear this sound the lightning round is over. are you ready, skeedaddy? i want to start with steve in connecticut. steve! >> caller: boo-yah, jim. >> bob: boo-yah, jim. >> caller: asbury automotive group. it hit 43 last week. it beat the last six straight quarters but has a peg of .6. is eight cream puff -- >> i got to tell you, feel the same about auto zone this group has been quietly undervalued. it's driving me nuts. let's go to uumesh.
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>> i like you are symbol mpg. >> umesh, there is a lot of people saying i don't like people in wisconsin. it had to do with an altercation with a green bay fan at the link. i tell you, look, it happened a while ago. people should get past it, right. the guy had it coming. let me answer the question. i think that, oh, the question is mgic. i like radian and i like genworth. i do like, wisconsin, people that, one guy got out of control. okay? someone had to teach him a lesson. that's all it was. how about craig in new york. craig. >> caller: bbbb-boo-yah, jim. >> good, craig. >> caller: one stock i never heard you talk about is penn national gaming. >> my bad. that's a racino stock. i like those. that stock goes higher. i need to go to dillan in delaware. dillan. >> caller: hey, water going on,
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jim, bill villanova university boo-yah. >> wildcat boo-yah. what a great time. i ready for my next college tour. it's up to regina. go ahead. >> caller: my question is carmax, two things, it is getting great from the standpoint. they are optimistic in terms of earnings. >> join that guy, downgraded, william blar. here's the skinny with this stock. it's still an inexpensive cost stock. i want to on it. dave in california. dave! >> caller: hirks jim, boo-yah from california. jim, i want to thank you again for all the educational work you did. you had a great segment on mlps last week. >> yes. >> caller: i know it's not right for retirement investor, like myself. but i have discovered there was a small family of egs and egns that focus on the olarrian index mlap. >> i don't know the fee structure with that one. that worried me. i do recommend lynnco, allen ceo
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is the one you don't have to have all the crazy forms for. that's the better one i know of. let's go to ed in ohio. ed! >> caller: oh, hi, jim. i want to talk about dominion resources. >> all right. let's do some talking. dominion is good. i have been excited about dominion because ovts of the co-point i have to tell you illlumineer. there will not be i believe an export facility for failure gas built and finished in this country in this decade. lmg is the way to play that. dominion is the way to play the utility business. i like the way it's run. that, ladies and gentlemen, is the conclusion of the lightning round! .
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in an environment like this where yield is hard to find, don't forget about the real estate investment trust. take healthcare trust of america, hta. real estate investment trust is
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one of the largest owners of the medical office buildings in the united states with a 4.4% yield, much better than you can get from the treasury, since the consumer goods we talked about. those have run so much their yields have run. they own medical real estated a janet to medical hospitals. the baby boomer generation starts to reach the age where, let's say we need a lot more medical care. plus obama care kicks in next year. affordable care act. that means more people with insurance, something that creates demand all over the country. agh reported two weeks ago. the funds key metric came in at 16%, a penny above where they were expecting. they declined in 1989, however the management sees the occupancy rates rising to 94% over the next 18 months. i think we should leave them considering agh has given you a 20% return in november.
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let's talk to the healthcare trust of america, mr. peters, welcome back to "mad money." have a seat. >> thank you. thank you for having me, jim. >> let's go over that, you are very confident things are going to 94. what do you see that you see this occupancy rate going higher? >> well, as you mentioned, affordable care act starts if 2014. we, last time i was hear, talked about seeing more activity in leasing. we continue to see that. with the 30-40 million more insured that are coming in. >> right. >> healthcare system is looking for the most effective place to put their outpatient needs. we're seeing additional larger users, tenant users. we also are starting to see employment. you know, the healthcare sector is supposed to grow greater than 70%. >> right. >> greater than the average employment over the next ten years. so we seen healthcare employers, educators, start using space. we've seen space demands now in the 10, zien, 20,000 zwayer 15
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space requirements. we haven't seen that the last two years. >> one of the things that intrigued me was in your medical supply and demand page, page 7, you say current rental rates are still below those of 2008. they haven't come back yet? >> no, they haven't. we had a same store growth this quarter, came off a growth in the 4th quarter. most of that came from two things. one, our contractual rate bumps 2-3%. second, we've internalized our asset management. 87% is in-house now. the third is the rents are constrained. we saw 1-2% renewal rates this last quarter. but as things recover, as the affordable care act gets implemented. we think we could see 2, 3, 4% of renewal rates which would, again, increase our growth going over the next two, three, four years. >> how could it happen you have medical office development declining and the rents haven't already started going higher.
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>> you know, the affordable care act went through a process. what we heard is the physician was good. the sole praktician was going to go away. all the health systems were going to hire the physicians. what we've seen is we've seen the physician groups get bigger. better cost efficiencys. instead of 10 doctors, that i have 20 or 30. we seen them plan on the preventative medicine they want to implement. we saw them start to use balance sheets. so, this is just starting and, of course, there wasn't funds in order to develop. developers have had big difficulty the last three/four years. >> that's a part of the commercial. you would think the commercial construction building. they obviously can't get loans or there isn't enough demand? >> the demand is there. what is happening is the developers were having trouble getting loans. they were not being able to build a spec. >> that's what it is. >> you need the healthcare system to take a significant
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portion of the space. you need a physician practice with good credit to come in and take a large portion of space. we are starting to see that. but we've still got great opportunity on campus, core critical real estate, where we think the rental rates will move up. we think the occupancy will move in 93-94%. >> you know, big backers of healthcare trust. j.p. morgan has a neutral one. they're saying there sa big lock-up operation in june and 201350% of the stock. shouldn't people wait for that opportunity in june? >> well, we unlock june 6th. we have been fortunate. first quarter, we were able to put an atm in place at the.offering. we raised $106 million. we expanded our institutional ownership. when i came on in november, we had two research analysts covering. we have eight now. >> yeah. that's really important sponsorship. >> it's an opportunity when thegion 6 pth unlock comes, for people, if there is an
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opportunity, to get invested in our stock. we aring looing forward to additional liquidity, more opportunity for people to get invested this is a core critical asset class. >> i totally agree with you. that's why we have backers. i think the fact that that increase is coming there is a possibility. this is my own speaking, higher distribution, stay on the road. that's what we care about on "mad money." >> thank you for having me. >> that's the ceo trust, hga, a big winner. look, expiration is coming up. this one has been one of the best in the group. so you ought to do some work on it. "mad money" is back after the break. .
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kids in high school play stock games these days. they are enormous all over the country t. knowledge base is quite good. i heard the following comment from parents. i wish i had listened to my kids an bought tesla. when i asked why? because they know cars, they care about the environment. most important, because it's going up higher. i know it's certainly working, just like my old stock, go to 90. to 100. stocks that go to 100 to the 110 playbook. it's the logic defining the strength in boeing. when it comes to tesla, let's say the kids have something going. my blog has talked about his love of electric cars, how incredibly perper saisipervasivy
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are. they don't appreciate the driveway effect. he expresses his own love for the power and silence in tesla. he tried all of the electrics and says tesla is the best. the performance the car care the xoitment. they're all there. it's hard not to sense the popularity is growing. hey, listen, we had our own electrician in the charging stations the part owner of the summit. because we had requests from patrons to do so. hey, it cost us a couple hundred smackers. we paid back in the short time when the customers will demand i. as much as i appreciate the cars. i am in no way opining. by the way, tesla got the financial backing of goldman sachs, they are flying high t. pros are being outgunned by the am cures and musk is trying to outbuy his enemies. they made it too small for the
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short sellers to bring the shorted. musk brilliantly said he didn't need the money on the last conference call, it spiked where it was plain worth it to do the secondary. anyway, in order to raise money to pay back the government loan, tesla, the fact that they didn't applaud this move shows how successfully they load this stock. in my view, though, the trajectory of tesla is a referendum on the fact that share cal is too small for the stock to be effectively shorted. not a referendum on the cars, which gives them 500,000 per cars, bridgestone sullivan said of course pa that pales next to the comparison. nevertheless, i figure the shorts can battle tesla on the merits and still lose because of the tightness of supply, which is why i refuse to say whether i like it or not. the next generation likes tesla,
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the car. that generation is playing a stock game now and will soon be buying cars later and playing the stock game for real. maybe that's all tesla's long-term holders need to know. stick with cramer. . apple ceo tim cook wants corporate tax reform and he is right. meanwhile, everybody in the white house knew about the irs except president obama. and stock margins remain wide next up on "kudlow." .
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all right. remember, tuesdays you do 19 straight? i don't know. it's always more. i promise just when you are on "mad money." i'm jim cramer. i will see you tomorrow! we have breaking news to start with tonight and it is devastating. a massive tornado has created a widespread disaster in the oklahoma city area. the biggest drama is what you are seeing right now, a school in moore, oklahoma, rescue crews are looking for survivors. we alts have reports of terrified parents rushing to the scene of that destroyed school. here's cnbc's bertha coombs with more. hello, bertha. >> reporter: hello, larry. your heart goes out to the people of moore, oklahoma. the tornado ripping through the area this afternoon causing

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